Reports - Online Grocery Delivery Services Market
Online Grocery Delivery Services Market Size, Share & Trends Analysis Report by Product Type (Breakfast & Dairy Products, Fresh Produce, Snacks & Beverages, Meat & Seafood, Staples & Cooking Essentials) by End User (Individuals, Other End Users) by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Assessment (2017 - 2022) & Forecast (2023 - 2030)
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2030
26.9%
North America
Asia Pacific
2017 - 2021
2021 - 2030
The final deliverable will encompass both quantitative and qualitative data, providing a comprehensive analysis of the market. The scope is customizable.
The global Online Grocery Delivery Services Market is valued at USD 315.2 Billion in 2022 and is projected to reach a value of USD 1670.3 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 26.9% between 2023 and 2030.
Premium Insights
An online grocer is either a supermarket or grocery store that accepts online orders or a standalone e-commerce service that sells groceries. Typically, delivery fees apply to this service. Online retailers are brick-and-mortar supermarkets that have developed internet channels to improve customer service. The changing purchasing preferences of consumers due to the pandemic outbreak and the unabated growth of the e-commerce industry are anticipated to drive market growth over the forecast period. The plethora of online payment options and assurances of contactless delivery of ordered groceries offered by online merchants are anticipated to contribute to market growth. Technological advances, continued urbanization, and a paradigm shift in consumers' purchasing preferences are driving the preference for online grocery shopping. Grocers' introduction of innovative business models, such as slotted or express delivery and on-demand or subscription delivery models, encourages consumers to purchase online groceries. The attractive discounts service portals offer, and the rise in disposable income significantly expand the market.
Diverse delivery options, such as immediate or same-day delivery and click & collect, remain a niche for market expansion. In the United States, grocery stores offer contactless and expedited next-day or same-day deliveries. This encourages small-scale grocery stores to partner with third-party service providers like Instacart and enter the market. Food-delivery platforms like Uber Eats and DoorDash are also entering the market, recognizing their lucrative potential. The outbreak of the pandemic drives the preference for online grocery buying in particular. As a result, the easy availability of time slots, lower service fees, and the convenience of picking up the groceries on the way encourage individuals to click & collect services, book groceries online, and pick them up at their convenience while avoiding crowds. As a result, grocers are rapidly developing click-and-collect capabilities to provide a convenient and comprehensive customer experience across their entire network of grocery stores. Compared to conventional channels, the online channel provides consumers with more options. Therefore, e-commerce portals enable consumers to compare various products and make informed purchasing decisions. This also creates opportunities for grocers to develop brand recognition while focusing on quality. Additionally, features such as saved preferences and order history for reordering encourage consumers to choose online grocery purchasing, thereby driving market expansion.
Economic Insights
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Top Market Trends
Market Segmentation
The global Online Grocery Delivery Services market can be categorized on the following: Product Type, End User, and Regions. Based on Product Type, the market can be categorized into Breakfast & Dairy Products, Fresh Produce, Snacks & Beverages, Meat & Seafood, and Staples & Cooking Essentials. Additionally, by End User, the market can be split between Individuals and Others. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Based on Product Type
Stape and Cooking Essentials to Account for Largest Market Share owing to the Pandemic’s Growth
The segments market dominance was enabled by the repeated purchases of staples, such as flour, food grains, and culinary essentials, including oil, which are regarded as necessities, particularly in Asia-Pacific households. As a result of the pandemics outbreak, consumers are anticipated to remain hesitant to venture out and purchase the groceries they need daily, prefer avoiding crowds, and adhere to social distancing norms. From 2022 to 2030, the breakfast & dairy segment is anticipated to have the highest growth rate. The segments growth can be attributed to the increasing demand for milk and non-milk products and the vendors' efforts to deliver these items to consumers' doorsteps. In the wake of the pandemic outbreak, a combination of a hectic lifestyle and rising disposable income is prompting customers to purchase these products from online platforms rather than visiting a physical store.
Based on End User
Individuals to Accommodate Largest Market Share due to Rising Number of Dual-Income Households
Due to the rise in working women, the number of dual-income households and the purchasing power and chaotic lifestyle have increased. Consequently, millennials seek shopping services that deliver the desired products to their homes. Other factors driving the demand for Online Grocery Delivery Services among individuals include the availability of options to save preferences and subscribe for timely grocery delivery and substantial discounts and offers compared to traditional grocery stores.
Based on Region
Asia Pacific to Delivery Maximum Products owing to Expanding Product Line for Deliveries
In 2022, Asia-Pacific held the greatest market share. From 2022 to 2030, the regional market is anticipated to maintain its dominant position and grow at the highest CAGR. The regional market expansion can be ascribed to the efforts of nations such as India and China to promote e-commerce and digitalization. For instance, in June 2016, the Indian government announced that it would permit 100 percent FDI in food retail, including via e-commerce channels, so long as the products are produced, processed, and manufactured locally.
North America is home to several major companies, such as Walmart, Instacart, Amazon.com, Inc., Target, and Kroger Co. Particularly, e-commerce transactions in the United States are growing steadily. According to the Retail Indicator Division of the U.S. Department of Commerce, e-commerce sales will increase 14.2% annually to $870 billion in 2021. However, the resurgence of in-store or offline shopping due to the easing of restrictions could threaten the development of online sales.
Competitive Landscape
The online grocery market is fragmented and is characterized by intense competition among the leading market participants. Alibaba.com, Amazon.com, Inc., JD.com, Inc., Rakuten, Instacart, and Walmart are some of the markets leading competitors. These businesses pursue various inorganic growth strategies to remain competitive and meet consumers' evolving requirements. Smaller entities are collaborating in particular.
The key players in the global Online Grocery Delivery Services market include - Tesco PLC (UK) among others.
Recent Market Developments
Segmentation of the Global Online Grocery Delivery Services Market
Source: www.vantagemarketresearch.com
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Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis | |
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